An important copyright trial expected to test the concept of "fair use" began last week in San Jose, California, as Kaleidescape Systems and the DVD Content Control Association went to court.

Manufactures the Kaleidescape System, essentially a DVD jukebox, connected via Ethernet to a separate player box. Users can insert a DVD and rip it to the installed hard drive, for later viewing upon a television screen.

The DVD CCA sees it as a case of breach of contract of the terms of the Content Scrambling System.
Kaleidescape argues that a consumer who has legally purchased a DVD should be free to "rip" or copy it to a hard drive and do with it what he wishes within the home – a case of “fair use.”

The DVD CSA contends Kaleidescape failed to prevent the creation of digital copies of DVD content; refused to meet its obligation to "frustrate attempts to defeat CSS" in its hardware; sold products that thwarts the CSS protections; did not meet the requirement to have the DVD disc in the drive "during authentication and playback"; and violated a prohibition to copy confidential CSS data.

The system allows copy of a DVD onto Keleidescape hard disk together with its two keys embedded on the discs, a violation of the specifications, according to DVD CSA. Having the keys on a hard disc lets users play back rental discs even after users have returned the discs.

In a move that suggests the case could touch on broad issues, the judge said he will hear arguments about the design of the Kaleidescape system, the relevance of the Digital Millennium Copyright Act of 1998 and an industry shift to allow managed copies in future products.

The DVD CCA may be preparing to take legal action against another home server maker, AMX

Story filed 25.03.07